Swatch Group half-year report shows double-digit growth in both sales and profit
Sales in the watch and jewellery segment for the Swiss behemoth grew by 16.7% to CHF3,400m (£2,207m), while its gross sales were up 14.4% to CHF3,847m (£2,498m). The operating profit also increased by 19.4% to CHF903m (£586m).
Key factors in the company’s growth were identified as an expansion of the distribution and retail network, as well as the performance of the production sector.
The company managed to grow despite the ongoing overvaluation of the Swiss franc and the high prices of diamonds and gold, which put pressure on the margins for some of its higher-end brands.
Swatch Group has also said that its prospects for the second half of the year also look promising, thanks to its involvement in several key events. Omega’s role will be the official timekeeper for the Olympics, as well as partnering the PGA of America at the Ryder Cup and it will also be the watch on James Bond’s wrist when Skyfall launches later this year.